§ Mr. Colvinasked the Chancellor of the Exchequer how he intends to treat the new milk outgoers scheme for tax purposes.
§ Mr. Norman LamontI assume that my hon. Friend is referring to payments under the Milk (Community Outgoers) scheme or the Milk (Partial Cessation of Production) scheme. Under these, outgoers can opt for the payments to take one of two forms: compensation for the loss of their quota, which is liable to capital gains tax, or compensation for the loss of profit, which counts as income for tax purposes. The Ministry of Agriculture, Fisheries and Food has taken steps to inform those applying for compensation of the tax position before they decide between the two options.